Chapter 7: Annutities
the annuity represents the largest possible monthly payment to an individual annuitant is
Straight life annuitant
w is a 39 year old female who just purchased an annuity to provide income for life starting at age 60. all of these would be acceptable annuity choices excpepyt
immediate annuity
Variable annuities may invest premiums in each of the following except
insurers corporate business account
P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
An immediate annuity
a ____ annuitty pays benefits based on units rather than stated dollar amount
variable
which of these statements concerning an individual straight life annuity is accurate
payments made to annuitant are for life
Which of the following is not included in an annuity contract
AD&D riders
which of the following are equity indexed annuities typically invested in
S&P500
S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?
Single premium
a contract owner terminates an annuity before income payment period begins - the owner will then receive
The current contract surrender value
what is considered to be a characteristic of an immediate annuity
benefit payments start within one payment period of purchase
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
fixed deferred
an individual who purchases a life annuity is given protection against
living longer than expected
which of these is an element of single premium annutiy
lump sum payment
An immediate annuity consists of a
single premium
a variable annuity has which of the following characteristics
underlying equity investments
what type of annuity has a cash value that is based upon the performance of its underlying investment funds
variable
K is an annuitant currently receiving payments. if she were to die before recieving payments equal to the correct value , a beneficiary will continue receiving payment until an amount equal to the contract value has been paid- this is a
Installment refund annuity
T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?
Life annuity with period certain
which type of contract liquidates an estate through recurrent payments
Annuity
All of the following statements regarding a tax sheltered annuity are true except
Income derived from the TSA is receive income tax free
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner
How does an indexed annuity differentiations from a fixed annuity
Indexed annuity owners may receive credit interest tied to fluctuations of the linked index
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
deferred
T purchased a 100,000 single premium, straight life annuity 5 years ago. He has received monthly payments since inception of annuity. if t dies the insurance company
Does not have to make any further payments
the payments on Qs annuity are no less than 250$ quarterly - which of the following annuities does Q own
Flexible Installment Deferred
the type of annuity that can be purchased with one monetary deposit is called an
Immediate Annuity
